I'm a real estate guy so take my advice with a grain of salt.Still, here is my simple thought process and maybe you agree:Stocks go to $#@% first, then the economy, and lastly real estate.There are opportunities like this only once every 10 years or so where amateurs like you and me can do really well investing in stocks no matter what stocks we pick (As long as they are big conglomerates in the S&P 500).Diversify between 10-20 companies and hold for 12-24 months, if not longer.Sell and gain 50-100% on your invested capital.Invest in real estate (Buy and hold properties).Here is a chart of every 20% decline we have had in the last 100 years and the returns within the first 12 months when the market does finally take off and go bull.It is my belief that you can grow your wealth much quicker in this current climate by investing in stocks.However, as I mentioned above please take this blog with a grain of salt because I usually am the dumbest guy in the room and don't claim to be any smarter today then I was 12 years ago.

Naming preferred states to invest in is as broad as saying "I want food for dinner." 

Just food for thought.

RentingFamilyMember is not interetsed in making money, just not paying the food, utilities, etc. of the SiblingRenter.(2) RentingFamilyMember's AGI is too high and Schedule E passive losses are limited.

Hmmm, guess you didn't notice that @Michael Plaks is an "Enrolled Agent".There are hot dog vendors, there are fast food cooks, there are sit down resaurant cooks and there are fine dining chefs. 

Just food for thought

problem with non-CA is that their food selection is not good and not many high pay job offering compare to CA, the latest part is actually what drives CA home price price to the sky.

Will small business follow (food trucks, bars)?

I'm gonna go against the grain here- you are in an area that is growing like crazy and appreciating at a rapid pace.

But that could be tricky because then Penn is supporting south Philly which would be against their grain of supporting West Philly.